This consumer has an old car and is wondering about how to buy a $30,000 car with a bad credit rating. Old cars that break down often are usually not a good investment. They cost a lot of money to repair and they are potentially unsafe as well. Bald tires, poor brakes, and rusty muffler systems are just a few of the problems with older cars. The last thing you want is a breakdown on an expressway somewhere in rush-hour or on a dark street at night in a bad neighborhood. . After an expensive tow to a repair shop you may feel it is not worth spending any more money on it.

Many consumers left to their own devices are not good money managers. It often takes a team effort as this consumer has found out.

His girlfriend appears to be the better one at managing a budget and making sure that all of the bills are paid on time. This is often the case with many couples where one of the partners is better at money management. It is extremely important to pay all bills on time and stick to a budget in today’s world.

While all of this is good, he still has a bad credit record and will have a hard time finding a lender willing to give him a loan. He might be better off if he and his girlfriend apply jointly for a bad credit car loan. She likely has a much better credit rating than he does. It would mean that she would be assuming the risk for the loan if he defaulted. This responsibility would also apply if there was a breakup in the relationship!

This becomes a very personal decision on their part with regards to applying for a loan to purchase a car. They need to be committed to a long-term relationship as well as committed to repaying the car loan. Both partners will be required to sign all of the ownership and loan documents.

This consumer if he applies jointly with his girlfriend could probably qualify for a low interest loan for his car. The car would be equity towards the loan. If he failed to make his payments, his girlfriend would need to meet the payment requirements for the car or it could potentially be repossessed. This is an important decision that they both must take since it would affect both of their credit ratings going forward. More discussion is required and information about his girlfriends credit rating is needed before a final decision can be made with regards to the car loan.

The latest applicant is wondering whether he can get out of debt trading stock? Many people have in fact made huge amounts of money in the stock market. But thousands more, in fact millions more have lost money in the market. Trading stocks is not for the faint of heart.

There are many different strategies for investing in the stock market. Associated with the strategy that you follow is the level of risk tolerance that you’re able to deal with. If you have $50,000 invested in the stock market, and lay awake at night worrying about your investment it might not be the right approach for you.

Day traders, are well known for making huge amounts of money and also for losing huge sums of money. They are dealing with large sums and also relying on the fluctuation of individual stocks on a daily basis to make a few pennies on the dollar. They trade often, sometimes every day on a given stock and are satisfied when they make a profit even if it’s just a few pennies per stock. This takes a lot of time and effort to stay abreast of what is going on in the market as well as in the world.

Long-term investment strategies suggest investing in blue-chip stocks that pay dividends and also have a growth potential. While this strategy is great for someone saving for their retirement, a long-term investment strategy is probably not the right approach for someone who is looking to make money quickly to reduce their debt.

The reality is that a consumer investing in the stock market needs to do their homework, evaluate the company that they are investing in and evaluate the risk associated with that company. They also must consider their risk tolerance and need to make a profit in the short term. If you can satisfy those conditions then you might invest in the stock market to make money to pay off your debt.

A couple of suggestions are in order for this question:

First of all seek out a financial advisor that you’re comfortable with and can trust. They will help you formulate a strategy for investing your savings, your retirement, and of course dealing with your debt.

Secondly, develop a Plan B. If this strategy does not work out and in fact you lose money or even just break even, you will still need to deal with your debt. You may want to consider a consolidation loan at a low interest-rate with a longer-term to provide more comfortable monthly payments that you can afford. You will pay less interest than if you just leave your debt as part of your credit card accounts.

You should also consider reducing the number of credit cards that you have to avoid future temptation to purchase items that you cannot afford.

Finally, world events tend to impact the stock market and the fluctuation of various company stocks. Events such as wars, financial stress in various countries, recessions, and individual market events can impact a particular stock. It can be like a roller coaster, However if you’re patient and make good decisions it is possible to make money on the stock market.

One of the biggest problems that consumers find they have to deal with is cash flow. It does not matter whether it is credit card debt or as in this case large renovation projects. If you do not have the cash to pay your bills eventually it will catch up with you and your going to need a loan.

This consumer buys homes that are in need of tender loving care, renovates them and sells them at a profit. Of course it takes time to complete the purchase, finalize the plans, finish the renovations and then make the sale. Only once the sale is completed is there cash to pay for materials, labor and taxes.

Managing your cash flow is extremely important, especially when there are delayed payments such as in this case. This consumer did not set aside any cash to account for the taxes that he owes on the profit he made in the past year. He wants to know what the best solution would be for him. He needs to be able to pay his $100,000 tax bill shortly.

It will be very difficult to find a lender to provide an unsecured loan. There simply is too much risk associated with this kind of loan. If the consumer has sufficient equity in the various properties he is working on, he might be able to obtain a loan secured against one of these properties. He will enjoy a better interest rate as well. There will be less risk for the lender since if he defaults on the loan, the home will be sold to recover the balance on the loan.

Depending on the actual timing of the due date for the taxes and the expected sale of his next development, there may perhaps be another alternative. He may want to enter into discussions with the government regarding a plan to pay his taxes over time. Of course there will be penalties and interest charges with this approach. However the government could end up being the lender for this $100,000 loan.

The accountant would along with the consumer need to put together a proposal to review with the government tax authorities. If they feel that this is a valid plan with a high chance of success, they might be willing to consider this approach as an option.

The bottom line for all consumers regardless of how much you owe is to manage your cash flow to avoid sudden payments that become due. Set aside funds to deal with the emergencies and in particular set aside funds to pay for future known invoices and tax debts.

It is really surprising how many successful people have money problems. After all, you would think that they should be able to manage their money issues in the same way that they manage their careers. Our current consumer has this problem in spades. He apparently has done very well in his sales career, yet cannot manage is bank account and pay his bills unless they are on automatic payments. He also spends a lot of money on clothes to look good and enhance his confidence in front of customers.

He may be totally focused on his sales career, but he also needs to pay attention to his credit rating. Employers check everything these days when they are hiring someone. One area they look at is your credit status. If a prospective employee has a bad credit rating, many employers will not hire them simply because there is lots of competition for the job and they can find qualified resources else where. They just do not bother to check the reasons that you have a bad credit rating. They assume the worst and look at other more qualified candidates. It is a very competitive market place and we all need all the help we can get.

Obviously this sales person would be much better off if he can deal with his current debt and lock in the monthly payments in a low interest loan which are automatically paid out of his checking account. Actually this is what most lenders are also looking for. They want the security of automating a payment from their customer from their checking account. In addition if he is able to maintain a good record of repaying this loan, his credit rating will improve over time.

His credit card debt is not huge, but he will be paying in access of 20% interest on the unpaid credit card debt on his various accounts. A personal loan has a much lower interest rate. Lenders will charge a higher rate for this consumer due to his bad credit rating than they would to their best customers. However the interest rate on the personal loan should still be much less than the credit card interest rate that is typically charged.

Given the focus that this consumer has on his career and now knowing the potential impact that a bad credit rating could have on his employment prospects, he will likely get this area of his life under control. A bad credit rating can also limit the ability to take out a car loan as well as a mortgage for a home. It is very important to get control of this issue if he has any plans in the future of buying a home or upgrading his vehicle.

This consumer would like to be approved for a consolidation loan for his credit cards and personal loans. His credit is bad, but he feels he should be able to find a lender that will approve his loan request. To date he has been turned down by several banks including his own local bank that he deals with. He cannot understand why, even though his credit rating is not in good shape. He requested that we help him understand why he is being declined and if we can assist in finding a lender.

There are six main reasons why consumers are turned down for debt consolidation loans. Once he understands these reasons, he can then do something about it and work on being approved for a loan. In most cases it is not just one area that needs to be focused on. Usually there are several areas that need to be addressed. The following are the top six reasons consumers are turned down for a loan:

Lack of security for debt consolidation loan – many lenders like to have security or collateral to support the loan in case the borrower is unable to repay the loan. For many it means that no security means no loan.

Poor credit scores and credit report troubles – this is a big one. If you have a lot of credit cards, missed payments, owe too much etc your scores will drop and this can be a red flag to many lenders.

Insufficient income to qualify for a debt loan – lenders compare your income level to all of the debt payments that you make including car loans, personal loans, rent or mortgage payments, property taxes and credit card debt. While a consolidation loan usually means that you pay less interest due to lower interest rates, the monthly payments are higher. Higher payments mean you pay off the loan more quickly than you would if you stick with the credit card debt. Anytime you exceed 35% payments compared to gross salary, lenders start getting nervous.

Lack of credit history in country where you live – if you have only been in the country for a short while or have not borrowed money before, you may not have a credit rating at all. Often students fall into this category as well as new immigrants.

Having too much debt – similar to not having enough income to support the debt you owe. If you owe too much already, lenders may not want to consider you for a loan of any type let alone a consolidation loan.

Lack of time on job – You might have the best job going, but if you have only been there for a short time, lenders view this as a possible risk area. They look for stability and earning power.

Depending which of these areas applies to you, there is still something that can be done to help you qualify for a debt consolidation loan. For example, a letter from your employer confirming your employment, especially if you are still being assessed could help. Previous long term employment records along with reasons for leaving might be another. Taking a second job to increase income levels, documenting the issues associated with your credit report and rating can be additional areas to look at. Sometimes a co-signor will also work, however the co-signor must be aware that if you fail to make your payments, they will become responsible for the remaining debt.

Finally, credit counseling, debt negotiation and worst case, bankruptcy solutions can also be considered. Bankruptcy is a last resort and will have profound impacts on your future ability to borrow money.

This consumer is looking for a lender who will lend him $45,000 to help him deal with an emergency and also consolidate his credit card debt. Many home owners experience emergencies from time to time associated with their homes. In his case, he needs a new roof and also must repair some collateral damage to the roof structure. This will be expensive and he does not have the emergency funds set aside for this type of an expense.

He also has approximately $20,000 in credit card debt spread over several credit cards. He is only paying the minimum monthly payment which means he is paying a high interest rate on the unpaid balance. The interest rate on credit cards varies between 18% to as high as 29%. Needless to say, this is an expense most people can do without.

He also has a bad credit rating which is making it difficult for him to find a lender to lend the money to him at a reasonable rate. If he can consolidate the credit card debt and the emergency repairs with a low interest rate loan, he will have a much more manageable monthly payment. The difficulty is finding a lender who will be willing to take the risk of lending money to someone with bad credit.

Fortunately for this consumer, he and his wife have relatively secure jobs with good income. Their monthly payments for utilities and car loans are only 33% of their income which is very reasonable. One of the reasons his credit rating is so bad is that he missed several payment to his utilities. He can fix this situation by setting up automatic payment instructions on his account. If he consolidates his credit card debt and closes several of the accounts, his credit rating will improve.

Bottom line for anyone reading this post is always pay your bills on time, never miss a payment, limit your credit cards to 2 or 3 at the most and always pay your balance on time and in full each month. If you cannot pay the balance on the statement date maybe you should not purchase the item in the first place.

Our consumer should be able to repair his credit rating relatively easily, although it will take a few years before his rating is adjusted. In the mean time he has the right approach regarding consolidating his credit card debt and also the repairs to his roof. He will have one low monthly payment provided he can arrange for low interest rate loan with a reasonable term. Most important for this consumer is that he must focus on paying the monthly payments each and every month until the loan is fully paid. In addition he must limit his credit card purchases to avoid getting into a similar situation in a few months or years.

This applicant actually does not realize that he is just on the edge of having a bad credit rating. While he has not missed any payments as of yet and has not been late on his rent, utilities or his credit card payments, he may soon be in that situation. As soon as he misses a payment, even if he is late for one, his credit rating will tank even further. With five credit cards all at their maximum levels most lenders will consider him to be high risk.

He has been using one credit card to pay off another credit card. In this scenario, he applies for a new credit card. They give him an interest free period if he transfers an unpaid balance from another credit card to the new one. This might be for a 3 month or a 6 month period. Yes he avoids paying interest for a period of time, however these amounts eventually must be repaid. This approach has caught up with him and now he has 5 credit cards with all of them at their maximum levels. When he was doing these transfers, he was avoiding interest, but not repaying any of the debt that he owes.

He is about to face frequent calls from collection agencies, he may become late paying his rent and utilities which jeopardize his ability to stay where he is and he will have an even more difficult time to find a lender willing to make a bad credit loan to him so he can consolidate his debt. Once collection agencies are involved, finding someone to lend money is very difficult even if consolidating debt is the right thing to do.

His current payments with interest and monthly principle will be high due to the high interest rates of 19% or more. It will take him a really long time to repay what he owes, since the credit card companies really do not want to be repaid. They just want you to keep paying the interest so they can continue to make money.

With a debt consolidation loan at an interest rate somewhere between 5% and 10%, this client could save a great deal and pay his debt off much more quickly. He has to arrange this debt consolidation loan before his bad credit rating becomes even worse.

He also has to clean up his bad habits. First of all focus on repaying his debt to lower the amount of interest he is paying. Secondly avoid new debt until he has this under control. Third, never miss a payment of any kind. Always plan ahead and meet the commitments to avoid negatively impacting your credit rating. Once he has repaid his existing debt, he can focus on improving his credit rating and arrange better loans in the future should he need them.

The offer to work overtime to make some additional money should be strongly considered. It would be an opportunity to create added income that could be used to repay some of the debt that he has.